- Financial technology company Vortiv recorded $3 million in revenue for the March quarter, which is higher than its initial $2.8 million estimate
- For the full 2020 financial year, which ends in March for Vortiv, the company achieved total revenue of $11.5 million — an increase of nearly $6 million since the previous financial year
- Vortiv says the spike shows off its robust revenue stream and loyal customer base, despite the COVID-19 restrictions and lockdowns
- Subsidiaries Cloudten and Decipher Works also secured new contracts worth around $2.3 million, which attributed to the company’s growth
- Following the recent uptake, Vortiv estimates the June quarter revenue will land between $3.6 million and $3.8 million
- As a result, Vortiv is up 7.69 per cent and shares are trading for 14 cents each
Financial technology company Vortiv (VOR) has reported strong financial results for the March 2020 quarter, exceeding its original expectations.
Revenue and EBIT
Vortiv recorded revenue of $3 million, which is higher than the company’s initial $2.8 million estimate.
Vortiv says the spike shows off its robust revenue stream and loyal customer base, despite the COVID-19 restrictions and lockdowns.
For the full 2020 financial year, which ends in March for Vortiv, the company achieved total revenue of $11.5 million — an increase of nearly $6 million since the previous financial year.
For the March 2020 quarter, Vortiv achieved earnings before interest and tax (EBIT) from continuing business of $0.43 million.
As a result, Vortiv’s total EBIT amounted to $1.5 million for the full year ending on March 31.
For the June 2020 quarter, Vortiv expects to grow its quarterly EBIT to a record $0.5 to $0.6 million.
Subsidiaries
As previously announced on March 27, both Cloudten and Decipher Works secured new contracts primarily from existing customers in financial services, government, utilities and other large corporations.
The total value of these new contracts over the months of March and April amounted to $2.3 million.
“The results demonstrate to our shareholders that the acquisitions made in the last two years, have added tangible value. The highly skilled Cloudten and DWX team is able to build on our relationships with large enterprises and capitalise on the robust demand growth of the industry,” Managing Director Jeff Lai said.
Cloudten is a Sydney-based cloud security specialist that assists the government, financial institutions and large corporations to secure and manage their cloud infrastructure. In February 2019, Cloudten became an advanced consulting partner of Amazon Web Services (AWS), the dominant infrastructure-as-a-service provider in the world.
Decipher Works is also based in Sydney and is a cybersecurity specialist, providing consulting, support and managed services to financial institutions and large corporations.
It maintains long-term relationships with major banks and institutions in Australia, and is now moving into other market sectors, such as insurance and financial services businesses.
Outlook
The company believes its ongoing momentum means its results for the 2021 financial year can exceed 20 per cent growth.
Further accretive merger and acquisition opportunities are continuing to be assessed to add further value to Vortiv’s organic growth.
Looking forward, the company estimates revenue for the June 2020 quarter will land between $3.6 million and $3.8 million.
Vortiv has a March year-end reporting period and will provide detailed and audited FY20 reporting towards the end of May.
VOR is up 7.69 per cent and shares are trading for 14 cents each at 11:07 am AEST.